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For the current quarter, eBay expects revenue to fall between $1.46 billion and $2.50 billion, exceeding estimates of $2.34 billion.
Shares of American e-commerce giant eBay (NASDAQ: EBAY) dropped as the company released its Q4 2022 earnings results. At press time, the multinational company trades down 5.33% to $45.30 in extended trading hours. The recent loss contributed to the 3.63% decline the company has on record for the last five days. According to the press release of the Q4 2022 financial performance, eBay did better than expectations during the three months.
eBay Announces Q4 2022 Results
The quarterly revenue was $2.5 billion on adjusted earnings of $1.07 per share. Predictions were that earnings would be $1.07 and revenue would come in at $2.47 billion. Despite beating expectations, the last quarter’s revenue shed 4% compared to Q4 2021. At the same time, GAAP and Non-GAAP operating margin was 22.5% and 29.9%, respectively. The quarterly dividend the Board of Directors declared for the period was also 14% higher than the year-ago period at $0.25 per share.
Speaking on the Q4 earnings report, eBay CEO Jamie Lannone said the company made remarkable progress on its multi-year strategic journey in 2022. He added that past investments are also helping the e-commerce giant’s innovations. Lannone commenced the company’s workers, referring to them as talented individuals with strong vision and commitment to excellence, which shareholders will benefit from in the coming years. The company’s chief financial officer Steve Priest also commented:
“Our Q4 results demonstrate the continued resilience of our marketplace amid economic uncertainty. I’m extremely proud of our teams for delivering on their quarterly financial commitments, maintaining prudent cost discipline, and executing key deliverables in support of our strategy.”
For the current quarter, eBay expects revenue to fall between $1.46 billion and $2.50 billion, exceeding estimates of $2.34 billion. At the same time, the expected diluted GAAP earnings per share for Q1 2023 is placed within the range of $0.77 and $0.81. Diluted Non-GAAP earnings per share is predicted to be between $1.05 and $1.09.
eBay Joins Global Firing Spree
Due to the same “economic uncertainty” Priest mentioned in his statement, eBay announced earlier this month that it was dismissing about 500 employees. In an SEC filing on February 7, the online marketplace said the job cut represents about 4% of its total headcount. While the impact would be global, eBay said it would help the company better serve its customers. Also, it plans to create more roles in “high-potential areas” while it expands. Like many other companies, eBay also promised severance packages and incentive payments to the dismissed staff.
Since the year started less than two months ago, eBay stock has gained more than 15% and 5.79% in the last three months.